Suppose you have $740 to invest in an account that earns 9 percent each year. How much money will you have after 8 years ? (round to the nearest penny.)
The exponential growth formula states that a(1+r)^t, where a is the initial amount, r is the ratio, t is the time.
Filling in the values, we have 740(1+0.09)^8=740(1.09)^8=1474.50.